GUARANTEED STUDENT LOAN PROGRAM
(CFDA No. 84.032)
I. PROGRAM PROFILE
Legislation: Higher Education Act of 1965, Title IV-B, P.L. 89-329 as amended,
(20 U.S.C. 1071). (Expires September 30, 1985)
Funding Since 1980:
Fiscal Year Loan Volume!/
Purpose: The Guaranteed Student Loan Program (GSLP) authorizes low-interest
loans to students to help pay students1 costs of attending eligible post-
secondary institutions, including colleges, universities and vocational,
technical, business and trade schools and certain foreign institutions.
Its purpose is to facilitate students1 access to postsecondary education and
to enhance their choices among a broader range of institutions.
Parent Loans for Undergraduate Students (PLUS) and Auxiliary Loans serve the
same general purpose as GSLP. PLUS/Aux1liary makes loans to parents of
dependent undergraduates, and to graduate and independent undergraduate
students. PLUS/Auxiliary loans are less subsidized than regular GSLP loans
and repayment begins within 60 days of the loan disbursement.
Eligibility; The GSLP program varies from State to State. Generally, all
U.S. citizens, nationals, or permanent residents in the United States for
other than a temporary purpose, may apply if they are enrolled or accepted
for enrollment on at least a half-time basis as undergraduate, graduate,
professional or vocational students at a participating postsecondary school.
A student who is presently enrolled at a participating institution must be
maintaining satisfactory progress. Also, the student must not owe a refund
on any Title IV grant or be 1n default on any Title IV loans. If the stu-
dent's or the family's adjusted gross income 1s $30,000 or more, the student/
family must undergo a "need test11 to determine eligibility for Federal payment
of interest on the student's behalf while the student is in school.
PLUS/Auxiliary: Parents and eligible students are generally can obtain loans
on the same basis as those borrowing under regular GSLP provisions. An
Important exception is that there 1s no need test on Income, although lenders
may restrict loans or loan amounts based on the borrower's creditworthiness.
u s vary